The URL can be used to link to this page

Home My WebLink About1987-1988.AuditReportREPORT ON INTERNAL ACCOUNTING CONTROL AND MEMORANDUM OF ADVISORY COMMENTS CITY OF CAPE GIRARDEAU, MISSOURI June 30, 1988 KERBER, ECK & BRAECKEL CERTIFIED PUBLIC ACCOUMAN S 1221 BROADWAY M[MBLIiti AMtl.PIGN 6PFlC1,5 IN (;APE (i IfL1RDGAU. MI$SOUW 63901 IKSTRIfIti VF CENTIFIEO CAPE VIftAA➢E W. M650VW {+(h1LIC AffLt.YTANLS S l MISSY SPPINOnPIEID.IW NOI ]Ibd]<A 568 MILwMIRFP. WISWKSs M WAKHIN( N. VC. Honorable Mayor, Members of the City Council and City Manager City of Cape Girardeau, Missouri We have examined the financial statements of the City of Cape Girar- deau, Missouri for the year ended June 30, 1988, and have issued our report thereon dated September 20, 1988. As a part of our examination, we made a study and evaluation of the City's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. The purpose of our study and evaluation was to determine the nature, timing and extent of the auditing procedures necessary for expressing an opinion on the City's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole. The management of the City of Cape Girardeau, Missouri is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study and evaluation made. for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in + the system. Accordingly, we do not express an opinion on the system of internal accounting control of the City of Cape Girardeau, Missouri, taken as a whole. However, our study and evaluation disclosed the conditions set out at pages 4 and 5 of this report that we believe result in more than a relatively low risk that errors or irregularities in amounts that would be material in relation to the financial statements of the City of Cape + Girardeau, Missouri, may occur and not be detected within a timely period. Other comments and observations which came to our attention during our examination are set out at pages 6 to 7 of this report. These conditions were considered in determining the nature, timing and extent of the audit tests to be applied in our examination of June 30, 1988 financial statements and this report does not affect our report on these ., financial statements dated September 20, 1988. We appreciate the courtesies and assistance provided our personnel during the course of the audit. If further information or clarification is " needed in reference to any of our comments and recommendations or if you need assistance in implementing any of the foregoing, please feel free to call us at any time. Cape Girardeau, Girardeau, Missouri September 20, 1988 0 COMMENTS ON INTERNAL ACCOUNTING CONTROL C INVESTMENTS Purchase of securities During our examination, it was noted that there is no written author- ization for the purchase of Treasury bills by the City. Although verbal authorization is given for the purchase of Treasury bills, since they are so large and purchased infrequently, we recommend the use of a written authorization signed by a responsible City official. OTHER COMMENTS AND OBSERVATIONS OTHER COMMENTS AND ODSERVATIONS Sewer taxes During our examination, it was noted that the sewer tax receivable increased significantly during the year. r We recomnend that the City investigate this difference to determine the appropriate actions to be taken. + FINANCIAL STATEMENTS AND AUDITORS' REPORT CITY OF CAPE GIRARDEAU, MISSOURI June 30, 1988 C O N T E N T S P3&F AUDITORS' REPORT 6 FINANCIAL STATF14ENTS COMBINED BALANCE SHEET - ALL FUND TYPES AND ' ACCOUNT GROUPS S COMBINED STATEMENT OF REVENUES AND EXPENDITURES AND FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS 10 COMBINED STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES 11 ' COMBINED STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL - DEBT SERVICE AND CAPITAL PROTECTS FUND TYPES 12 i COMBINED STATEMENT OF REVENUES AND EXPENSES AND RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES 13 s COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES 14 ' NOTES TO FINANCIAL STATEMENTS 15 GENERAL FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 34 SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET 35 M COMBINING STATEMENT OF REVENUES AND EXPENDITURES 36 AND FUND BALANCE ,• 2 3 C O N T E N T S r Page SPECIAL REVENUE FUNDS - Continued CONVENTION/TOURISM SPECIAL REVENUE FUND - STATE- MENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 37 DOWNTOWN BUSINESS DISTRICT SPECIAL REVENUE FUND - STATEMENT OF REVENUES AND EXPENDITURES - +� BUDGET (GAAP BASIS) AND ACT11AL 38 PARKS AND RECREATION SPECIAL REVENUE FUND - STATEMENT OF REVENUES AND EXPENDITURES - .. BUDGET (GAAP BASIS) AND ACTUAL 39 HEALTH SPECIAL REVENUE FUND - STATEMENT OF REVENUES ' AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAI, 40 MOTOR FUEL TAX SPECIAL REVENUE FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 41 DEBT SERVICE FUNDS DEBT SERVICE FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 42 CAPITAL PROJECTS FUNDS .� COMBINING BALANCE SHEET 43 COMBINING STATEMENT OF REVENUES AND EXPENDITURES AND FUND BALANCE 44 MULTI -USE CENTER CONSTRUCTION FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 45 FAU STREET GRANTS FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 46 ,. COMMUNITY DEVELOPMENT BLACK GRANT FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND .. ACTUAL 47 3 C O N T E N T S CAPITAL PROJECTS FONDS - Continued STREET IMPROVEMENTS FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL PARK IMPROVEMENTS FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL ENTERPRISE FUNDS COMBINING BALANCE SHEET COMBINING STATEMENT OF REVENUES AND EXPENSES AND RETAINED EARNINGS INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET COMBINING STATEMENT OF REVENUES AND EXPENSES AND RETAINED EARNINGS TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET COMBINING STATEMENT OF REVENUES AND EXPENDITURES AND FUND BALANCE SUPPLEMENTAL. INFORMATION REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMI- NATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN EXAMINATION OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH THE STANDARDS FOR AUDIT ISSUED BY THE GAO 4 Page 48 49 50 51 52 53 54 55 57 59 C O N T E N T S Page SUPPLEMENTAL INFORMATION - Continued y REPORT ON STATEMENT OF FEDERAL FINANCIAL ASSISTANCE 60 STATEMENT OF FEDERAL FINANCIAL ASSISTANCE 61 REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 63 REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN - EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT 65 STATEMENT OF INSURANCE COVERAGE 69 5 OF ccS IN + S( tA%AS MIs50VILL MIILRWMAUNFEKel IWNOIS wI5tDN51N wAS'MIN(IQN. O G KERBER, ECK & BRAECKEL CERTIFIED PUBUC ACCOUNTANTS 1221 RROAVWAY CAPE UIRAROFAU, MISSOURI 63701 MGM@E0.5 nMEPIf.W INSTT.fI£ OF CEIRIFIFD PUeLtC AGCS%.tNiANTS 114J34455a Honorable Mayor and Members of the .. City Council City of Cape Girardeau, Missouri We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri and the combining, individual fund and account group financial statements of the City as of and for the year ended June 30, 1988, as listed in the table of contents. Our examination was made in accordance with generally accepted governmental auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As described in note A3, the general purpose financial statements referred to above do not include the General Fixed Asset Account Group, which should be included to conform with generally accepted accounting + principles. The amount that should be recorded in the general fixed assets account group is not known. In our opinion, except for the general fixed account group on which we are unable to express an opinion, the general purpose financial statements referred to above present fairly the financial position of the City of Cape Girardeau, Missouri, at June 30, 1988, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting princi- ples applied on a basis consistent with that of the preceding year. Also, "a in our opinion, the combining, individual fund, and account group financial statements referred to above present fairly the financial position of each of the individual funds and account groups of the City of Cape Girardeau, + Missouri, at June 30, 1988, and the results of operations of such funds and the changes in financial position of individual proprietary fund types for the year then ended, in conformity with generally accepted accounting principles. 0 r Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the com- bining, individual fund, and individual account group financial statements. The accompanying financial information listed as supporting schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the City of Cape Girardeau, Missouri. Such information has been subjected to the auditing procedures applied in the examination of the general purpose, combining, individual fund, and individual account group financial statements and, in our opinion, is fairly stated in all material respects in relation to the e financial statements of each of the respective individual funds and account groups, taken as a whole. Cape Girardeau, Missouri September 20, 1988 7 --e '+es lell 11x. ne Sz.'S 15 a1 as:':S ..o e+e IT .ez "1 6 o r '[9 IT •.' (f vic p s - - n- _ o - - TT I T-111— .. £ - 11 :¢> as .O[ S ¢6 it : _.0 6d $ tsv ..iZ a 901 11 s.S fi CTS e a 0 Doul - :v 1 V o -: T ! l'vL :! uu ..d cFwd evu l_� 65, sub. me $i,uv,111 63.199. 032 $1,111.11 S15,425,140 6F.11a,On S1ea.5x1 31.561,£16 111,1111" 9 11,6 a, 1,12s,R63 - - l2, .IE k1nE^ b nd i Fc 1G_�! 1, 112 ]. :alx - aeal - � - _ Ona Ict ma - (Meno ra nL.c L'RB [II :IES _ £115,206 eN t ri _ 3 _ _ C able Pab411n 6 121.son 5 5 - S aot.ixa 6Fc 151, sSe .F 1 55,6.5 ... p 6 S e6 1.11 a G £6 cxe bene-Lv _ 3,90) - J95,J acGerrs - - - - sz /P a rete obll ..does C able m fro F) "1 e bocGs C e (w ce EI drat 1 obl t6ae s onbb - e fro:o 3l eLwGfva be s ab aa(].312,111 o.ersaa 5 p. a - _ _ - iso. 90 or ner 1 bill ee �` io cal ltab rL_c.ox 55012. 1.1 ]aE x62, ]] ;9.b21e .1,117 110 8,567,116 11960,.50 ! l'vL :! uu ..d cFwd evu l_� 65, sub. me $i,uv,111 63.199. 032 $1,111.11 S15,425,140 6F.11a,On S1ea.5x1 31.561,£16 111,1111" 9 11,6 a, 1,12s,R63 - - l2, .IE k1nE^ b crveG 11,663 1, 112 ]. - - - _ Ona 2IF 4i5 ! l'vL :! uu ..d cFwd evu l_� 65, sub. me $i,uv,111 63.199. 032 $1,111.11 S15,425,140 6F.11a,On S1ea.5x1 31.561,£16 111,1111" 9 Y 4 1 1 Y t 1 i 1 1 i 1 1 f 1 f 1 Y City of Cape Glrardeaq Hissora rl COMB INEO STATEMENT OF REVENUES AND EXPENDITURES AND FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS June 30, 1988 Fiduciary Gove rnmen[al Fund Tvvm Fund Tvoea Total, Spacial Deb[ Capital Expendable (Memorandum General Revenue Service PrOfec Trua Onlyl REVENUES Taxes and special ass tuot[a $ 6,881,451 $ 670,992 $ 222,D227,G37$ 209,206 $319,365 $ 8,30B4O51 Ll cenam and permlo 535,380 - - - - 535,300 Fines and forfeitures 310,617 - - - 10,327 320,944 Interest 146,378 70,470 188,783 5,297 21,276 433,204 Fees aM a wire charges 198,071 146,165 - 230 9,251 353,723 In[ergo1e rnmen[a1 95,310 812,497 8,348 532,925 63,886 1,512,966 Miacellaneoua 142,168 7,849 - 3,897 16,069 169,983 Donations - - - 436.505 436,505 8,309,381 1,707,973 424,168 752,055 877,179 12,070,756 EXPENDITURES General Bove moment 1,318,277 151,266 - - 71126 1,476,669 Public safety 4,272,479 - - - - 4,272,479 Hlghvaya and streets 1,256,880 42,857 - - - 1,299,737 Health - 113,028 - - - 113,028 Culture and recreation 90,347 933,532 - - - 1,023,879 Conmunity development 534,747 2,703 - - - 537,450 Capital projects - - - 1,120,362 16,979 1,137,361 Personal a [vtcea - - - - 199,733 199,733 Materials and supplies - - - - 76,997 76,997 Contractual services - - - - 159,993 159,993 Special projects - - - - 438,848 438,848 Internal aa tykes - - - 1,981 1,981 Debt s rvlce Principal retirement 83,04$ - 120,000 - - 203,046 Interest and fiscal charges 21.984 - 752.707 - - 774,691 7.577,762 1,243 386 872,707 1,120 382 901y657 11.7151894 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 731.619 464,587 (448,539) (368,327) (24,478) 354,862 OTHER FINANCING SOURCES (USES) Dpera[ing transfers in 560,024 918,000 287,766 306,654 - 2,072,444 Operating transfers o (1,038,257) (1,054,410) - (34) - (2,092,701) Proceeds from fixed •a 23,488 786 - - - 24,274 Proceeds of refunding debt - - 3.580.000 - - 3.580.000 (454,745) (135.624) 3,867.766 306.620 3.584.017 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 276,874 328,963 3,419,227 (61,707) (24,478) 3,938,879 Fund balance at beginning of year 2.918,938 962,586 379,805 349.417 320,693 4,931,639 Fund balance at and of year $ 3,195,812 $ 1,291,549 $3,799,032 $ 287,710 $296,415 $ 8,870,518 The accompanying notes are an integral part of this statement. 10 f The ac ......tog notes are an Lntegral part of this statement. 11 City of Cape Girardeau, MI ..... I C0MBINED STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES Year ended June 30, 1980 General Fund Soeclal Revenue Fund Type, Variance - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Taxes $ 6,808,819 $ 6,881,451 $ 72,632 $ 646,48D $ 670,992 $ 24,512 License. and permit. 477,400 535,380 57,980 - - - Flnes and forfeitures 310,000 310,617 617 - - - Interest 123,379 146,378 22,999 38,000 70,470 32,470 Fees and s -Lee charges 197,500 198,077 577 134,300 146,165 11,865 Int .... vemment.1 93,500 95,310 1,810 791,400 812,497 21,097 Miscellaneous 117,050 142 168 (4.882) 6.500 7.849 X349 8,157,648 8,309,381 151,733 1,616,680 1,707,973 91,293 EXPENDITURES General government 1,344,305 1,318,277 26,028 166,720 151,266 15,454 Public safety 4,303,719 4,272,479 111,240 - - - High vay. .nd a1rger. 1,257,527 1,256,880 647 153,500 42,857 110,643 Health - - - 117,446 113,028 4,418 Culture and rorro.tbon 85,391 90,347 (4,953) 993,691 933,532 60,159 Community development 571,282 534,747 36,335 15,260 2,703 12,557 Debt service Principal 83,005 83,048 (43) - - - Interest and fiscal charge. 22.030 21.984 46 7.747.262 7.517.762 169,300 1.446 617 1.243 386 203._231 EXCESS OF REVENUES OVER EXPENDITURES 410,386 731,619 321,233 170,063 464,587 294,524 OTHER FINANCING SOURCES (USES) Operating t nsfev to 560,025 560,024 (1) 918,000 918,000 - Operating transfers o (1,143,257) (1,038,257) 105,000 (1,186,654) (1,054,410) 132,244 Proceeds from fixed assets 22.953 23.488 535 150 786 636 (560,279) (154.745) 105.534 (268 504) (135 626) 132 880 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (149,893) $ 276,874 $426,767 $ (98,441) $ 328,963 $427,404 The ac ......tog notes are an Lntegral part of this statement. 11 The .c ompanying notes are an integral part of this statement. 12 City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES AND EXPENDITRIES - BUDGET (GAAP BASIS) AND ACTUAL - DEBT SERVICE AND CAPITAL PROJECTS FUND TYPES Year ended June 30, 1988 Debt Be rvtce Fund I ... a Capital P—lecta Fund Types Varian - VarL.— - Favorable Favorable Bud¢et Actual (Unf,V rable) Budaet Actual (Unfavorable) REVENUES Taxes and speclal assessment, $ 217,200 $ 22],03] $ 9,837 $ 300,048 $ 209,206 $ (90,842) Interest 9,500 188,783 179,283 11,100 5,]9] (5,303) Intergove rrvaentsl 8,300 8,348 48 610,404 532,925 (77,479) Fees and ,e rvI.c charges - - - 230 230 - Mlacellaneous - _ _ _ 3.897 3,_897 235.000 424,168 189,168 921,782 752,055 (169,]2]) EXPENDITURES Captial projects - - - 1,140,649 1,120,382 20,267 Debt , —Los Principal retirement 120,000 120,000 - - _ _ Interest and fiscal charges 5]4.32] ]52.70]]]j. 800) - 694.327 8]2.70] 37) 1.140.649 1.120 382 201267 DEFICIENCY OF REVENUES OVER EXPENDITURES (459,327) (448,539) 10,788 (218,867) (368,327) (149,460) OTHER FINANCING SOURCES (USES) Oper.tt.. ..... roffer. to 420,010 287,766 (132,244) 306,654 306,654 - Proceeds of refunding debt 3,580,000 3,580,000 - - - - Operating transfer. our - - - (35) (34) 1 4.000.010 3.867 766 (132.24 306.619 306.620 1 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 3,540,683 $ 3,419,227 $(121,456) $ 87,752 $ (61,]0]) $(149,459) The .c ompanying notes are an integral part of this statement. 12 City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES AND EXPENSES AND RETAINED EARNINGS ALL PROPRIETARY FUND TYPES Year ended June 30, 1988 OPERATING REVENUES Charges for services Rents J Concession and equipment sales Interest Sale of property Miscellaneous Intergovernmental Sewer assessments OPERATING EXPENSES Personal services Materials and supplies General operations Contractual services Internal services Projects Depreciation Operating income (loss) NONOPERATING EXPENSES Interest ,. OPERATING INCOME (LOSS) BEFORE OTHER FINANCING SOURCES (USES) OTHER FINANCING SOURCES (USES) Operating transfers in NET INCOME ~ Retained earnings at beginning of year Adjustments to fixed assets and contributed capital Retained earnings at end of year i Pronrietary Fund TVPe 1,1.64,196 1.59,123 103,282 857,349 348,646 13,862 749.675 3,396,133 (481,208) 152,036 (633,244) 20.257 (612,987) 12,705,442 (56.093) $12,036,362 317,339 300,895 1,540 353,371 5,967 68,930 1.048.042 1.140 Totals (Memorandum Only-) $ 3,607,148 89,623 47,631 23,572 21,244 7,667 142,280 24.942 3,964,107 1,481,535 460,018 104,822 1,210,720 354,613 13,862 8}8 605 4.444.175 (480,068) Internal Enterprise Service $ 2,598,337 $1,008,811 89,623 (611,847) 47,631 - 6,315 17,257 - 21,244 5,797 1,870 142,280 - 24 94? 2,914,925 1,049,1..82 1,1.64,196 1.59,123 103,282 857,349 348,646 13,862 749.675 3,396,133 (481,208) 152,036 (633,244) 20.257 (612,987) 12,705,442 (56.093) $12,036,362 317,339 300,895 1,540 353,371 5,967 68,930 1.048.042 1.140 Totals (Memorandum Only-) $ 3,607,148 89,623 47,631 23,572 21,244 7,667 142,280 24.942 3,964,107 1,481,535 460,018 104,822 1,210,720 354,613 13,862 8}8 605 4.444.175 (480,068) The accompanying notes are an integral part of this statement. 13 152,036 1,140 (632,104) 20.257 1,140 (611,847) 1,128,103 13,833,545 (56.093) _ $1,129,243 $13,165,605 The accompanying notes are an integral part of this statement. 13 City of Cape Cirardeau, Missouri COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES Year ended June 30, 1988 Sources of working capital Operations Net income (loss) Add back items not requiring working capital - depreciation Working capital provided by operations Net increase in lease purchase obligations payable Net decrease in restricted assets Net increase in contributed capital Total sources of working capital .. Uses of working capital Acquisition of fixed assets Decrease in long-term revenue bonds payable ' Net increase in restricted assets Change in life of assets Total uses of working capital Net increase (decrease) in working capital Elements of net increase (decrease) in working capital Cash and investments "+ Receivables Prepaid expenses Accounts payable + Accrued expenses Interest payable Net increase (decrease) in working capital Proorietary Fund T res Totals Internal (Memorandum Enterprise Service Only) $ (612,987) $ '1,140 $ (611,847) 749.675 68.930 818.605 136,688 70,070 206,758 319,301 - 319,301 - 192,988 192,988 4n 067 - 451.067 907,056 263,058 1,170,114 1,227,962 148,165 1,376,127 25,000 - 25,000 49,366 - 49,366 65.914 65,914 1,368 242 148 1 1.516,407 $ (461,186) $114,893 $ (346,293) $ (88,471) $ 77,438 (11,033) 218,578 (5,511) 213,067 6,264 2,138 8,402 14,280 45,548 59,828 (603,800) (4,720) (608,520) (8.037) - (8,037) $ (461,186) $114,893 $ (346,293) The accompanying notes are an integral part of this statement. 14 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1988 + NOTE A - SUMMARY OF ACCOUNTING POLICIES The City of Cape Girardeau, Missouri operates under a charter which went into effect April 12, 1982. The City operates under a Council -Manager form of government and provides the following services as authorized by its charter: public safety (police and fire), highways and streets, sanitation, health and social services, culture -recreation, public improvements, planning and zoning and general administrative services. A summary of the significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. 1. Reporting Entity The City, for financial purposes, includes all of the funds and account groups relevant to the operations of the City of Cape Girardeau. The financial statements presented herein do not include agencies which have + been formed under applicable state laws or separate and distinct units of government apart from the City of Cape Girardeau. The National Council on Governmental Accounting (NCGA), in order to clarify which organizations, functions and activities of government should be included in general purpose financial statements, issued NCGA- 3, "Defining the Governmental Reporting Entity". The NCGA's intention was to provide a basis for making comparisons among units of government, to reduce the possibility of arbitrary exclusion or inclusion of organi- zations in financial reports, and to enable financial statement users to identify the operations for which governmental entities are responsible. The NCGA concluded that the basic criteria for including other organiza- tions in a governmental unit's reporting entity is the exercise of over- sight responsibility over such agencies by the governmental unit. The City has developed criteria to determine whether outside agencies should be included within its financial reporting entity. The cirteria + include, but are not limited to, whether the City exercises oversight responsibility on the following: + Financial interdependency Selection of governing authority Designation of management .+ Ability to significantly influence operations Accountability for fiscal matters Scope of public service Special financing relationships 15 ED r City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1988 NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued ® Based on the foregoing criteria, the financial statements of the follow- ing entity is included in the accompanying financial statements. Cape Girardeau Public Library - The City Council appoints the Library r Board and approves the budget. The operations of the Library are report- ed in the Library Fund, a trust and agency fund. The following entities are not part of the City's reporting entity be- cause the City exercises no oversight responsibility and has no account- ability for fiscal matters. The significant factors for exclusion are: The appointed board members have no continuing relationship with the City; the board designates management; the City cannot significantly influence the operations; the board has sole budgetary authority; the entities control surpluses and deficits; the City is not legally or morally obligated for the entities debt; and the entities are responsible for fiscal management. In this situation, the preceding factors are conclusive in contrast with the following factors indicating inclusion: The entities operate within the boundaries of the City and the City appoints members to the board. Based on the criteria above, the following entities are excluded from the financial statements of the City, the Downtown Business District, the Downtown Redevelopment Corporation and the Show Me Center Board of Manag- ers. 2. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into fund categories as follows. GOVERNMENTAL FUNDS General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. 16 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1988 NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assess- ments, expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. Capital Project Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues collected, expenses paid, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City, on a cost -reimbursement basis. FIDUCIARY FUNDS Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for indi- viduals, private organization, other governments, and/or other funds. Agency Funds are custodial in nature and do not involve measurement of results of operations. The City of Cape Girardeau has Agency Funds set up for the City's library and the flood protection program. 3. Fixed Assets and Lone -term Liabilities The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its meas- urement focus. All governmental funds are accounted for on a spending or 17 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED .June 30, 1988 NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued 3. Fixed Assets and Lone -term Liabilities - Continued "financial flow" measurement focus. This means Chat only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. The City of Gape Girardeau presently maintains detailed property records .. only for proprietary fund types. Detailed property records are not maintained for all other funds of the City of Cape Girardeau. Expendi- tures for general fixed assets are charged to expenditures when made. a All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. Long-term liabilities expected to be. financed from governmental funds are accounted for in the General Long-term Debt Account Group, not in the governmental funds. The two account groups are not "funds." They are concerned only with the .. measurement of financial position. They are not involved with measure- ment of results of operations. 0 Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets, in spite of their spending measure- ment focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables is deferred until they become current receivables. Noncurrent portions of long-term loans receivable are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabili- ties in the General Long-term Debt Account Group. 18 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1988 NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued 3. Fixed Assets and Lone -term Liabilities - Continued All Proprietary Funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activi- ty are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earn- ings components. Proprietary Fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by Proprietary Funds is charged as an expense against their operations. Accumulated deprecia- tion is reported on Proprietary Fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows. Buildings 25-50 years Improvements 10-40 years Equipment 3-10 years s 4. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, y regardless of the measurement focus applied. All governmental funds are accounted for by using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Taxpayer -assessed in- come, gross receipts and sales taxes are considered "measurable" when in the hands of intermediary collecting governments and are recognized as revenue at that time. Anticipated refunds of such taxes are recorded as liabilities and reductions of revenue when they are measurable and their validity seems certain. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term .� debt which is recognized when due. All Proprietary Funds are accounted for by using the accrual basis of accounting. Their revenues are recognized when they are earned and their expenses are recognized when they are incurred. Unbilled Solid waste and Sewerage system utility service receivables are recorded at year end. 19 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1.486 NOPE A - SUMMARY OF ACCOUNTING POLICIES - Continued 5. Budgets and Budgetary Accounting The City follows these procedures in establishing the budgetary data reflected in the financial statements. 1, The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. .. 3. Prior to July 1, the budget is legally enacted through passage of an ordinance. r 4. The City Manager is authorized to transfer budgeted amounts between programs within any department, however, any revisions that alter the total expenditures of any department must be approved by the City Council. 5. Formal budgetary integration is employed as a management control device during the year for all funds. w b. Budgets for all funds are adopted on a basis consistent with gener- ally accepted accounting principles (GAAP). 'r Individual budget amendments made throughout the year were not material in relation to the total original appropriations which were amended. 6. Total Columns on Combined Statements - Overvie Total columns on the Combined Statements - Overview are captioned 'Memo- randum Only- to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present results of operations in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund elimina- tions have not been made in the aggregation of this data. s NOTE B - CASH AND INVESTMENT 1, Deposits At June 30, 1988, the carrying amount of the City's deposits was $2,896,052 which excludes $4,795 of petty cash funds held at various City locations. The deposits are categorized in accordance with risk factors created by governmental reporting standards. 20 i City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED r June 30, 1988 NOTE B - CASE AND INVESTMENT - Continued Carrying Bank Amount. Balance Category #1 $ 100,000 $ 100,000 Category #2 2,796,052 2,796,052 Category #3 - Category #1 includes deposits covered by depositing insurance or collateral held by the district in the district's name. Category #2 includes deposits covered by collateral held by the financial institutions trust department in the district's name. Category #3 includes deposits which are uncollateriali.zed or the collateral is held by the financial institutions trust department but not in the district's name. 2. Investments At June 30, 1988, the City has investments in U.S. Treasury Bills totalling $4,571,770. This amount includes $3,572,998 to be used to retire the 1984 Public Building Bonds (note E). 21 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1988 22 NOTE C - PROPERTY TAXES Property taxes attach as an enforceable lien on property. Taxes were levied on August 17, 1987, for collection during this fiscal year. The tax rates assessed at the time were as follows. r City Revenue $,30/100.00 assessed valuation Library Tax .14/100.00 assessed valuation a Public Health Tax .04/100.00 assessed valuation Special Business District #2 (advalorem tax) .85/1.00.00 assessed valuation Debt Service Tax .10/100.00 assessed valuation Reserve for doubtful property taxes at June 30, 1988, was $1.1,940. NOTE D - CHANGES IN GENERAL FIXED ASSETS A summary of proprietary fund type property, plant and equipment at June 30, 1988 follows: Enterprise Internal Service Land $ 435,320 $ 37,500 Buildings 8,900,654 359,066 Improvements other than buildings 10,643,600 11,477 Equipment 1,544,958 663,395 .. Construction in progress 535,417 22,059,949 1,071,438 Less accumulated depreciation 7429 950 221,690 .. $14,629,999 $ 849,748 22 City of Cape Girardeau, Missouri NOTES TO FINANCIAL, STATEMENTS - CONTINUED June 30, 1988 NOTE E - LONG-TERM OBLIGATIONS The following is a summary of bond transactions of the City for the year ended June 30, 1988. General Obli- Revenue p_ation Bonds Bonds To Cal Bonds payable at July 1, 1987 $4,780,000 $1,375,000 $6,155,000 Bonds issued - refunding debt 3,580,000 - 3,580,000 Bonds retired 120.000 25,000 145 000 Bonds payable at June 30, 1988 $8,240,000 $1,350,000 $9,590,000 Bonds payable at June 30, 1988, are comprised of the following individual issues. $4,660,000 1984 Public Building serial bonds due as follows. Year ending Interest Principal Interest - June 30 Rate Due Due Intal 1989 12.008 $ 130,000 $ 468,660 $ 598,660 1990 12.00 140,000 452,460 592,460 1991 12.00 150,000 435,060 585,060 1992 12.00 160,000 416,460 576,460 1993 12.00 175,000 396,360 571,360 1994 9.25 190,000 377,073 567,073 1995 9.00 3,715,000 184.142 3,999,142 $4,660,000 $2,730,215 $7,390,215 Principal payments are made on November 1, and interest payments are made semi-annually on May 1, and November 1. On November 1, 1994, proceeds from the 1987 Refurnding Bonds will be used to retire the remaining $3,510,000 of 1984 Public Building serial bonds. 23 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1988 ... NOTE E - LONG-TERM OBLIGATIONS - Continued $3,580,000 1987 General Obligation Refunding Bonds due as follows. Interest. earned Year ending Interest Principal interest on escrow r June 30 Rate Due Due Total Total 1989 $ - $ 238,628 $ 238,628 $ - 1990 - 238,628 238,628 - 1991 - 238,628 238,628 - 1992 - 238,628 238,628 - 1993 - 238,628 238,628 - 1994 - 238,628 238,628 - .. 1995 - 238,628 119,869 118,759 1996 6.00% 265,000 230,678 - 495,678 1997 6.15 280,000 214,117 - 494,117 1998 6.30 295,000 196,215 - 491,215 1999 6.45 315,000 176,764 - 491,764 2000 6.60 340,000 155,385 - 495,385 2001 6.70 360,000 132,105 - 492,105 y 2002 6.80 385,000 106,955 - 491,955 2003 6.90 415,000 79,548 - 494,548 2004 7.00 445,000 49,655 - 494,655 2005 7.10 480.000 17,040 497,040 $3,580,000 $3,028,858 $1,551,637 $5,057,221 M Principal payments are made annually on November 1, and interest payments are made semi-annually on May 1, and September 1. On August 1, 1987, the City of Cape Girardeau issued $3,580,000 of General Obliga- tion Refunding Bonds Series 1987 with interest rates varying from 6.008 to 7.108. The Refunding Bonds will constitute general obligations of the City and will be payable as to both principal and interest from advalorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City, The Refunding Bonds are being issued to provide the City with funds which, together with other legally available funds of the City, will be sufficient to refund $3,510,000 of the $4,780,000 principal amount of the outstanding Series 1.984 Bonds of the City. To effect the refunding of the Series 1984 Bonds, the City entered into an Escrow Deposit Agreement (the "Escrow Deposit Agreement"), dated as of August 1, 1987, 74 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINdED June 30, 1988 NOTE E - LONG-TERM OBLIGATIONS - Continued with The Boatmen's National Bank of St. Louis, as escrow agent ("Escrow Agent"). Pursuant to the Escrow Deposit Agreement, the Escrow Agent deposited the proceeds of the Bonds to be applied in the amount of $3,580,600 to the purchase of United States Treasury Securities (the "Escrowed Securities"). The principal. amount of the Escrowed Securities, together with the interst income thereon, will be payable at such times and in such amounts, together with the moneys held uninvested by the Escrow Agent, to pay, when and as due, the interest on the Bonds from November 1, 1987 through November 1, 1994, and to pay the prin- cipal of and redemption premium on the Series 1984 Bonds to be redeemed on November 1, 1994. The Escrow Deposit Agreement that the Escrowed Securities (exclusive of investment earnings thereon) and the moneys held uninvested by the Escrow Agent are irrevocably pledged to the payment of the principal of and redemption premium on the Series 1984 Bonds and may be applied only to such payment. 25 City of Cape Girardeau., Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1988 Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1, and September 1. 26 NOTE E - LONG-TERM OBLIGATIONS - Continued _ $1,350,000 1986 Sewerage System Revenue Bonds due as follows. Year ending Interest Principal Interest June 30 Rate Due Due Total 1989 9.008 $ 30,000 $ 107,298 $ 137,298 1990 9.00 30,000 104,597 134,597 1991 9.00 35,000 101,897 136,897 1992 8.50 40,000 98,748 138,748 1993 8.50 45,000 95,347 140,347 1994 8.50 50,000 91,523 141,523 1995 7,50 50,000 87,272 137,272 1996 7.50 60,000 83,523 143,523 1997 7.50 65,000 79,022 144,022 1998 7.50 70,000 74,148 144,148 1999 7.60 75,000 68,897 143,897 2000 7.70 85,000 63,198 148,198 r 2001 7.75 95,000 56,652 151,652 2002 7.80 100,000 49,290 149,290 2003 7.90 110,000 41,490 157.,490 2004 8.00 125,000 32,800 157,800 2005 8.00 135,000 22,800 157,800 2006 8.00 150,000 12 000 16-2,10 $1,350,000 $1,270,502 $2,620,502 a Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1, and September 1. 26 M City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1988 + NOTE E - LONG-TERM OBLIGATIONS - Continued The annual requirements to amortize all debt outstanding as of June 30, 1988, including interest payments of $5,477,938 are as follows. + General Year ending Obligation Revenue June 30,,_ Bonds Bonds Total 1989 $ 598,660 $ 137,298 $ 735,958 1990 592,460 134,597 727,057 1991 585,060 136,897 721,957 1992 576,460 138,748 715,208 1993 571,360 140,347 711,707 1994 567,073 141,523 708,596 + 1995 4,017,901 137,272 4,155,173 1996 495,678 143,523 639,201 1997 494,117 144,022 638,139 + 1998 491,215 144,148 635,363 1999 491,764 143,897 635,661 2000 495,385 148,198 643,583 2001 492,105 151,652 643,757 + 2002 491,955 149,290 641,245 2003 494,548 1.51,490 646,038 2004 494,655 157,800 652,455 + 2005 497,040 157,800 654,840 2006 - 162 000 162,000 + $12,447,436 $2,620,502 $15,067,938 $213,857 is available in the Debt Service Fund to service the general obligation bonds. This does not include the $3,572,998 available to apply to refunding of 1984 series bonds. In the Sewer Fund, $174,332 cash is available. Of this, $169,332 is avail- able to service the Sewerage Revenue Bonds. The City is in compliance with all significant limitations and restrictions + contained in the various bond indentures. 27 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1988 NOTE F - CAPITAh LEASE OBLIGATIONS The City is the lessee of certain equipment under capital leases. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are amortized over their estimated productive lives. Following is a summary of property held under capital Leases. General Fixed Enterprise Asset Group Funds Lugger truck $ - $ 64,425 Sanitation truck - 99,476 Refuse trucks 114,104 Sludge trucks - 250,698 Golf carts - 68,000 Golf course irrigation system - 204,281 Fire truck 410,164 410,164 800,984 Less accumulated amortization 131,021 $410,164 $669,963 The following is a schedule by years of future minimum lease payments under capital, leases together with the present value of the minimum lease payments as of June 30, 1988. Year ending General Fixed Enterprise June 30, Asset Group _ Funds 1989 $105,032 $202,285 1990 105,032 1.89,420 1991 105,032 150,302 1992 52,489 129,293 1993 - 49,155 Succeeding years 99,976 Total minimum lease payments 367,585 820,431 Less amount repre- senting interest 40.469 136,092 Present value of net minimum lease pay- ments $327,116 $684,339 99 M .. City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1988. NOTE F - CAPITAL LEASE OBLIGATION - Continued I Current portion $ 86,197 $150,383 Noncurrent portion 240,919 533 956 $327,116 $684,339 NOTE G - DEFICIT FUND BALANCES The CDBG Grants Fund has a deficit fund balance of $40,867. .. NOTE H - PENSION PLAN 1. Plan Description a The City of Cape Girardeau contributes to the Missouri Local Government Employees Retirement System (LAGERS), an agent multiple -employer public employee retirement system that acts as a common investment and adminis- tative agent for local government entities in Missouri. LAGERS was created and is governed by state statute. As such, it is the system's responsibility to administer the law in accordance with the expressed intent of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401a and it is tax exempt. All full-time employees are eligible to participate in LAGERS. Benefits vest after five years of credited service. Employees who retire on or after age 60 (55 for police and fire) with 5 or more years of service are entitled to an allowance for life based upon the benefit program then in .. effect. The allowance is equal to a benefit factor multiplied by the final average salary multiplied by the number of years of service. LAGERS also provides early retirement, death and disability benefits. If r, the political subdivision participates under the contributory plan, each member contributes 4% of gross salary. The employer is required by statute to contribute the remaining amounts necessary to finance the coverage of its employees using the actuarial basis specified by state statute. 2. Funding Status and Progress The amount shown below as the "pension benefit obligation" is a standard- ized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and 29 .. City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1988 NOTE H - PENSION PLAN - Continued 2. Funding Status and Progress- Continued is intended to (i) help users assess the plan's funding status on a going -concern basis, (ii) assess progress being made in accumulating sufficient assets to pay benefits when due, and (iii) allow for compari- sons among public employee retirement plans. The measure is independent of the actuarial funding method used to determine contributions to the plan. The pension benefit obligation was determined as part of an acturiai valuation of the plan as of February 29, 1988. Significant actuarial assumptions used in determining the pension benefit obligation include ., (a) a rate of return on the investment of present and future assets of 7.08 per year compounded annually, (b) projected salary increases of 46 per year compounded annually, attributable to inflation, (c) additional projected salary increases ranging from 0.08 to 4.06 per year, depending on age, attributable to seniority/merit, and (d) the assumption that benefits will increase 38 per year after retirement. +Y At February 29, 1988, the assets in excess of the pension benefit obligation were $30,216, determined as follows: Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits (prior service portion of benefits) $1,3.33,304 Terminated employees not yet receiving benefits 73,742 Current employees -- Accumulated employee contributions including allocated investment income 1,397,842 Employer financed - Vested 2,916,709 Employer financed - Non -vested 4§6,819 Total Pension Benefit. Obligation 6,188,416 Net Assets Available for Benefits; at Cost: 6.21.8.632 r Assets in Excess of the Pension Benefit Obligation $ 30,216 3. Funding Policy The City of Cape Girardeau is obligated by state statute to make all required contributions to the plan. The required contributions are actuarially determined using the individual entry -age actuarial cost 30 i City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1988 NOTE H - PENSION PIAN - Continued 3. Funding Policy - Continued method. The prior service costs are amortized over an initial amortiza- tion period of 40 years, and the amount of the additional unfunded obli- gations created due to increases in plan benefits over a period of 30 years. The significant actuarial assumptions used to determine the actuarially determined employer contribution requirements are the same as those used. + to compute the pension benefit obligation. The LAGERS Board of Trustees adopted revised actuarial assumptions and changed funding methods from the attained age actuarial cost method to the individual entry -age actuarial cost method for the February 28, 1987 actuarial valuations. The significant change in actuarial assumptions was to decrease the pay increase assumption from 58 to 48. These changes generally increased the aggregate actuarial accrued liability and generally resulted in a reduction of computed employer contribution rates. The City of Cape Girardeau's contribution for 1987 of $308,554 was made in accordance with actuarially, determined contribution requirements determined through an actuarial valuation. This amount consisted of normal cost and amortization of prior service costs. The value of vested benefits was not determined in connection with the actuarial valuation of the plan. At February 28, 1987, (the date of the most recent actuarial valuation) the total unfunded liability for benefits accrued was $963,672. + 4. Trend Information Historical information about the City's participation in the Missouri Local Government Employees Retirement System is presented herewith as re- quired supplementary information. This information is intended to help users assess the City's retirement plan's funding status on a going - concern basis, assess progress being made in accumulating assets to pay benefits when due, and allow for comparisons with other public employees retirement systems (PERS). „ (1) (2) (3) (4) (5) (6) Pension Unfunded PBO Net Assets Benefit Percent Unfunded Annual As a Percent of Valuation Available Obligation Funded PBO Covered Covered Payroll Date For Benefits (PBO) (1)/(2) (2)-(1) Payroll_ 2/28/87 $5,276,196 $5,595,774 948 $319,578 $4,968,360 68 ^* 2/29/88 6,218,632 6,188,416 100 (30,216) 4,970,027 31 h City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1.988 NOTE H - PENSION PLAN - Continued 4. Trend Information - Continued The above assets and pension benefit obligation do nor include the assets- and present value of benefits associated with the Benefit Reserve Fund and the Casualty Reserve Fund. Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and unfunded pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of the pension benefit obligation provides one, indication of the plan's funded status on a going -concern basis. Analysis of the percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the plan. The unfunded pension benefit obligation and annual covered payroll are both affected by inflation. Expressing the unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the progress being made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this percentage, the stronger the plan. Revenues by source Member Employer Fiscal contri- contri- Investment year butions butions income Total 6/30/87 $197,543. $303,803 $778,789 $11280,133 6/30/88 203,439 308,554 424,987 936,980 ,. Expenses by type Fiscal year Benefits Refunds Total 6/30/81 $227,472 $37,921 $265,393 .. 6/30/88 265,824 59,276 325,100 M NOTE I - INTEREST EXPENSE Interest cost totaling $816,907 was incurred during the year ended June 30, 1988. No interest cost was capitalized as part of the cost of assets constructed during the period. 32 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED .lune 30, 1988 NOTE J - INTERFUND RECEIVABLES ANA PAYABLES r The following is a summary of the amounts due from and to other funds. Due from Due to General Fund $772,966 $ - FAU Street Grants Fund - 84,286 CDBG Grants Fund - 130,577 Sewer Fund - 137,210 Solid Waste Fund - 317,938 Airport Fund -102 9.55 -� $772,966 $772,966 NOTE K - DEFERRED REVENUE During the year ended June 30, 1988, the City received two Community Development Block Grants from the State of Missouri which provided the City with funds to loan to private corporations. As per the agreement with the CDBG program, a portion of the loan must be repaid to the CDBG W program but a portion is to be retained by the City. The revenues to be received from these corporation loans have been deferred until received, The revenue will be recognized over the life of the loans. 33 34 City of Cape Girardeau, Missouri GENERAL FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 Variance - Favorable Budget Actual (Unfavorable) REVENUES Taxes $ 6,808,819 $ 6,881,451 $ 72,632 .. Licenses and permits 477,400 535,380 57,980 Fines and forfeitures 310,000 310,617 617 Interest 123,379 146,378 22,999 Fees and service charges 197,500 198,077 577 ' Intergovernmental 93,500 95,310 1,810 Miscellaneous 147,050 142,168 (4,882) 8,157,648 8,309,381 151,733 EXPENDITURES General government 1,344,305 1,318,277 26,028 Public safety 4,383,719 4,272,479 111,240 ' Highways and streets 1,257,527 1,256,880 647 Culture and recreation 85,394 90,347 (4,953) Community development 571,282 534,747 36,535 .� Debt service Principal 83,005 83,048 (43) Interest and fiscal charges 22,030 21,984 46 7,747 262 7,577.762 169.500 + EXCESS OF REVENUES OVER EXPENDITURES 410,386 731,619 321,233 OTHER FINANCING SOURCES (USES) Operating transfers in 560,025 560,024 (1) Operating transfers out (1,143,257) (1,038,257) 105,000 Proceeds from fixed assets 22,953 23,488 535 (560,279) (454,745) 105,534 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDI- TURES AND OTHER FINANCING USES $ (149,893) $ 276,874 $426,767 34 1 1 Y 1 i I 1 a 1 a a a a a Y f Clq of Cape Glurdeau, Mlaaourl SPECIAL REVENUE FUND$ COMBINING BALANCE SUET June 30, 1988 0ount- Convention/ Boslness Parka and Motor Totals Tourism District Recreation Health Fuel Tax (Memo random Food Fund Fund Fund Fund Only) ASSETS Cash $618,111 $41,135 $210,537 $24,811 $363,422 $1,258,046 Receivables, net of atlovancee for doubtful e lbles cevaPenonal property Is. - - - 319 - 319 Real estate tax - 1,340 - 4,229 - 5,569 Havel, motel, god restaurauut tax 47,386 - - - - 47,386 Motor fuel tax - - - - 93,340 93,340 Motor vehiclelicense fees - - - - 33,947 33,947 Motor vehicle sales tax - - - - 13,230 13,238 Restricted cash and Investments 664 788 1,452 $665,527 $42,475 $211,201 $30,147 $503,947 $1,453,297 LIABILITIES Acwunta Payable $ 23,028 $ 134 $ 51,076 $ 1,707 $ 39,261 $ 115,206 Accrued liabilities Payroll taxes and fringe benefits - - 42,724 3,818 - 46,542 Fund balance Rcae rued - - 664 788 - 1,452 Unreserved 646_499 12641 116_737 23,834 4666686 1.290,097 642_`_499 42641 117,_401 24 622 464`606 1,291,549 $665,527 $42,475 $211,201 $30,147 6503,947 $1,453,297 35 W City of Cape Girardeau, Mla sourl SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES AND EXPENDITURES AND FUND BALANCE Year ended June 30, 1988 Dam Convention/ Business Parks and Motor Tota15 Tourlsm District Recreation Health Fuel Iax (Memorandum Fund Fund Fund Fund Fund Only) REVENUES Taxes and special assessments $ 541,029 $37,412 $ - $ 92,551 $ - $ 670,992 Interest 34,513 1,487 4,871 1,247 28,352 70,470 Fees and s zvtce chargee - - 146,165 - - 146,165 IncerBovernmencal - - 620 3,438 808,439 612,497 Miscellaneous - 3,560 4`289 - 7.849 575,542 42,459 155,945 97,236 836,791 1,707,973 EXPENDITURES General governnenc 151,266 - - - - 151,266 Hlghvays and streets - - - - 42,857 42,857 Health - - - 113,028 - 113,028 Culture and recreation - - 933,532 - - 933,532 Community development - 2,703 - - 2.703 151,266 2_,703 933,532 113,028 42,857 1.243.386 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 424,276 39,756 (777,587) (15,792) 793,934 464,587 OTHER FINANCING SOURCES (USES) Operating c ..fere In - - 900,000 18,000 - 918,000 Operating Ra..far, au (287,756) - - - (766,654) (1,054,410) Proceeds FmM flied assets 786 )g6 28j,7756) 900 785 18 _000764 6`4) (135,624) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 136,52C 39,756 123,199 2,208 27,280 326,963 Fund balance at beginning of year 505,979 2,585 (5,798) 22,414 437,406 962 586 Fund balance at and of year $ 642,499 $42,341 $ 117,401 $ 24,622 $ 464,686 $ 1,291,549 W 37 City of Cape Girardeau, Missouri CONVENTION/TOURISM SPECIAL REVENUE FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 Variance - Favorable + Budget Actual (Unfavorable) REVENUES Taxes and special assessments $ 522,000 $ 541,029 $ 19,029 Interest 12.000 34.513 22.513 534,000 575,542 41,542 EXPENDITURES General government 166.720 151.266 15.454 EXCESS OF REVENUES OVER EXPENDITURES 367,280 424,276 56,996 OTHER FINANCING USES + Operating transfers out (420.000) (287.756) 132.244 DEFICIENCY OF REVENUES OVER EXPEND- ITURES AND OTHER FINANCING USES $ (52,720) $ 136,520 $189,240 37 City of Cape Girardeau, Missouri DOWNTOWN BUSINESS DISTRICT SPECIAL REVENUE FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 ME Variance - Favorable Budget Actual (Unfavorable) REVENUES Taxes and special assessments $36,600 $37,412 $ 812 Interest 400 1,487 1,087 Miscellaneous 3500 3560 60 40,500 42,459 1,959 EXPENDITURES Community development 15560 2_703 12557 EXCESS OF REVENUES OVER EXPENDITURES $25,240 $39,756 $14,516 ME 39 City of Cape Girardeau, Missouri PARKS AND RECREATION SPECIAL REVENUE FUND ^� STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 Variance - Favorable ' Budget Actual (Unfavorable) REVENUES Interest $ 2,500 $ 4,871 $ 2,371 Fees and service charges 134,300 146,165 11,865 Intergovernmental 500 620 120 Miscellaneous 3,000 4,289 1289 140,300 155,945 15,645 EXPENDITURES Culture and recreation 993,691 933,532 60 1_59 r DEFICIENCY OF REVENUES OVER EXPENDITURES (853,391) (777,587) 75,804 OTHER FINANCING SOURCES Operating transfers in 900,000 900,000 - Proceeds from fixed assets 150 786 636 900,150 900,786 636 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES $ 46,759 $ 123,199 $76,440 39 40 City of Cape Girardeau, Missouri HEALTH SPECIAL REVENUE FUND ' STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 Variance - Favorable Budget Actual (Unfavorable) REVENUES Taxes and special assessments $ 87,880 $ 92,551 $ 4,671 Interest 100 1,247 1,147 Intergovernmental 3,400 3,438 38 91,380 97,236 5,856 ' EXPENDITURES Health 117,446 113,028 4,418 DEFICIENCY OF REVENUES OVER EXPENDITURES (26,066) (15,792) 10,274 OTHER FINANCING SOURCES Operating transfers in 18,000 18,000 EXCESS (DEFICIENCY) OF REVENUES AND r OTHER FINANCING SOURCES OVER EXPENDITURES $ (8,066) $ 2,208 $10,274 40 City of Cape Girardeau, Missouri MOTOR FUEL TAX SPECIAL REVENUE FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 r Budget REVENUES Favorable Interest $ 23,000 Intergovernmental 787.500 $ 5,352 810,500 EXPENDITURES 836,791 Highways and streets 153.500 EXCESS OF REVENUES OVER EXPENDITURES 657,000 OTHER FINANCING USES (766.654) Operating transfers out (766.654) $ 27,280 $136,934 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING USES $(109,654) 41 Variance - Favorable Actual (Unfavorable) $ 28,352 $ 5,352 808.439 20.939 836,791 26,291 42.857 110.643 793,934 136,934 (766.654) $ 27,280 $136,934 City of Cape Girardeau, Missouri DEBT SERVICE FUND " STATEMENT OF REVENUES AND EXPENDITURES - BUDGE'T (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 REVENUES Taxes and special assessments .. Interest Intergovernmental FXPENDITtR2ES Debt service Principal retirement .. Interest and fiscal charges DEFICIENCY OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) .. Operating transfers in Proceeds of refunding debt s EXCESS (DEFICIENCY OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER ,. FINANCING USES Variance - Favorable Budget - Actual (UnfavorabLej $ 217,200 $ 227,037 $ 9,837 9,500 188,783 179,283 8,302 8,348 48 235,000 424,168 189,168 120,000 120,000 574,327 75'2.707 (1.78.380) 694,327 372,70Z ;178.380} (459,327) (448,539) 10,788 420,010 287,766 (132,244) 3,580,000 3 580 000 _ - 4.000.010 3.867.766 11 244) $3,540,683 $3,419,227 $(121,456) 42 1 f i 1 1 i i 1 1 1 1 1 1 1 i 43 City of Cape Girardeau, MLvourL CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1988 MultL-Use Center FAU Street COBG Street Park Totals Construction Gra Gra s Imprn ers is Improvements (Mem d - Fund Puna Fnnd Fund Fund Only) ASSETS Cash in investments $ - $ - $ - $103,379 $50,368 $ 153,]4] Special a ts tece lvable - 61,012 - 197,280 - 258,792 Grant. r celvable - 86,239 214,446 - - 300,665 Other r ceivables - - 245,890 - - 245,890 Restricted cash and Lnveatments - - 191y023 191.023 $ $142,251 $ 651,409 $301,159 $50,368 $1,150,182 LIABILITIES Account. payable $ - $ - $ 315,809 $ 66,343 $19,522 $ 401,224 Due to other governments - - 95,000 - - 95,000 Dne t .,her funds - 84,286 130,522 - - 214,863 Deferred revenue. - - 150,890 - - 150,890 Fund bal.nce Reserved - - 191,023 - - 191,023 Unreserved - 62,965 (231,940) 234.816 30,796 96,637 62,965('0.867) 231..16 30,296 282.210 $ - $142,251 $ 651,409 $301,159 $50,368 $1,150,L82 43 i 1 i ► f 1 1 ► 1 1 1 ► t 1 1 i 1 1 1 City of Cape Girardeau, Missouri CAPITAL PROJECTS FUNDS 44 C0MMININ6 STATEMENT OF REVENUES AND EXPENDITURES AND FUND BALANCE Year ended June 30, 1988 Multi -Use Center FAU Street CDBG Street Park Totals Construction Grano Grana Ire,—anent' Improvements (Memorandum Fund Fund Fund Fund Fund Only) REVENUES Intergoverumental $ - $ 961 $531,964 $ - $ - $ 532,925 Charges for $a rvmea - - - 230 - 230 sm Speciala env - 61,012 - 148,194 - 209,206 Ml sce llaneom 3,897 - 3,897 Interest - _(5 )38) (4,040) 13,_341 2`234 5,797 56,235 527,924 165,662 2,234 752,055 EXPENDITURES Capital projects 22 481 143 484 578,105 337_691 39`621 1,120 382 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (22,481) (87,249) (50,181) (172,029) (36,387) (368,327) OTHER FINANCING SOURCES (USES) Operating transfers In - 136,654 - 170,000 - 306,654 Operating transfers out (10) _L) - (34) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (22,491) 49,405 (50,205) (2,029) (36,387) (61,707) Fund balance at beginning of year 22,491 13`560 9`338 236,845 67,_183 349,117 Fund balance at end of year $ - $ 62,965 $(40,867) $ 234,816 $ 30,796 $ 287,710 44 0 .. City of Cape Girardeau, Missouri MULTI -USE CENTER CONSTRUCTION FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 EXPENDITURES Capital projects OTHER FINANCING (USES) Operating transfers out (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING USES Variance - Favorable &ud¢et Actual (Unfavorable) $ 22,481 $ 22,481 $ $(22,491) $(22,491) $ 45 46 City of Cape Girardeau, Missouri FAU STREET GRANTS FUND .. STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 Variance - Favorable �. Budeet Actual (Unfavorable) REVENUES Intergovernmental $ 1,000 $ 961 $ (39) Interest - (5,738) (5,738) Special assessments - 61,012 61,012 1,006 56,235 55,235 EXPENDITURES Capital projects 143,041 143484 ,(443) DEFICIENCY OF REVENUES OVER EXPENDITURES (142,041) (87,249) 54,792 OTHER FINANCING SOURCES .. Operating transfers in 136,654 136,654 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES $ (5,387) $ 49,405 $54,792 46 City of Cape Girardeau, Missouri COMMUNITY DEVELOPMENT BLOCK GRANT FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 Variance - Favorable Budget Actual (Unfavorable) REVENUES Intergovernmental $609,404 $531,964 $(77,440) Interest - (4,040) (4,040) 609,404 527,924 (81,480) EXPENDITURES Capital projects 609,379 578,105 31,274 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 25 (50,181) (50,206) OTHER FINANCING USES Operating transfers out (25) (24) 1 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES $ - $(50,205) $(50,205) 47 48 City of Cape Girardeau, Missouri .� CAPITAL PROJECTS - STREET IMPROVEMENTS FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 Variance - + Favorable Budeet Actual (Unfavorable) REVENUES Special assessments $300,048 $ 148,194 $(151,854) + Interest 10,100 13,341 3,241 Charges for services 230 230 - Miscellaneous - 3,897 3,897 310,378 165,662 (144,716) EXPENDITURES Capital outlay 300,048 337,691 (37,643) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 10,330 (172,029) (182,359) + OTHER FINANCING SOURCES Operating transfers in 170,000 170,000 + EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES $180,330 $ (2,029) $(182,359) 48 49 City of Cape Girardeau, Missouri PARK IMPROVEMENTS FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1988 Variance - Favorable Budget Actual (Unfavorable) REVENUES Interest $ 1,000 $ 2,234 $ 1,234 EXPENDITURES Capital projects 65,700 38,621 27 079 DEFICIENCY OF REVENUES OVER EXPENDITURES $(64,700) $(36,387) $28,313 49 1 1 1 1 I 1 t i t Y i i City of Cape Girardeau, Mtv.-I ENTERPRISE FUNDS COME WING BALANCE SHEET June 30, 1980 Totals Sever Solid Waste Airport Golf Course (Memorandum Fund Fund Fund Fund Only) ASSETS Cash and tnve rtmenu $ _ $ _ $ _ $ 14,92] $ 14,92] Utility charges receivable (net of all ovanace for doubtful receivables) 226,)2] 138,160 - - 364,887 Grants receivable - - 209,526 - 209,526 Special assessments ce r lvable 6,]3] - - - 6,717 Restricted cash and Investment 174,332 - - 17,106 191,438 Prepaid insurance 4.919 10 3,279 38 8,216 412,695 138,170 212,805 32,071 )95,]41 Property, plan[ and equipment Land 24,750 55,921 354,649 - 435,320 Buildings 8,055,235 30,000 813,919 1,500 8,900,654 Improvements other than bu tldtnga 7,239,251 - 3,197,969 206,300 10,643,600 Equipment 541,610 786,145 41,954 175,249 1,544,958 Construction in progress 259.017 276,400 535,417 16,119,863 872,066 4,684,891 383,129 22,059,949 Lev accumulated depreciation 4.811,896 42�-999 2.111.395 85,660 ],429,950 11.30] 967 451`067 2,573,496 297,469 14 629,999 $11,720,662 $589,237 $2,786,301 $329,540 $15,425,740 LIABILITIES Accounu payable $ 53,895 $ 61,047 $ ]2,]28 $ 11,117$ 15g,987 Accrued liabilities Payroll taxes and fringe benefits 19,084 25,160 1,570 8,093 53,90] Interest payable 44,121 2,801 - 5,831 52,)53 Other liabilities 24,129 - - - 24,129 Due to that funds 137,210 317,938 102,955 - 558,103 Revenue bonds payable 1,350,000 - - - 1,350,000 Leu. purchase obi tgat Lon payable 269,711 157,377 - 257,251 684,339 Fund equity Contributed capital 279,690 - 227,4)0 - 507,160 Retained aa rnings Reserved 174,332 - - 17,106 1911438 Unreserved 9.368,490 21914 2,421.578 29,912 11.S44, 924 9.822 512 24_,914 2.649.048 4]`_048 12.543,5+2 $11,720,662 $589,237 $2,786,301 $329,540 $15,425,740 50 I 1 i 1 Y 1 1 1 1 i 1 i i 1 i 1 f 1 1 City of Cape C(rardeau, Mleaourt ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES AND EXPENSES AND RETAINED EARNINGS Year ended June 30, 1988 Total. 5ever Solid Haste Airport Golf Course (Memorandum Fund Fund Fund Fund Only) OPERATING REVENUES Charges for service $1,249,057 $1,102,650 $ 19,941 $226,689 $ 2,598,337 Rents - 6,936 02,607 - 89,623 Concession and equipment sales - - - 47,631 47,631 Interest 4,635 - 115 1,565 6,315 Miscellanea's 1,171 - 1,209 3,417 5,797 Intergovernmental - 314 141,966 - 142,280 5ever assessments 24,942 4.942 1,279,805 1,109,900 245,918 279,302 2,914,925 OPERATING EXPENSES Personal se rvlces 425,146 570,919 42,397 125,734 1,164,196 Materials and aupplleA 66,483 17,523 10,048 65,069 159,123 General ope ratlom 62,982 34,719 1,235 4,346 103,282 Contractual services 195,454 444,281 202,336 15,278 851,349 Internal se rvlcea 138,319 180,510 8,445 21,372 348,646 P°aleats 13,862 - - - 13,862 Depreclatisn 427.005 141.175 142.604 38,091 749.675 1.330.051 1 389.127 407.065 269_890 3.396.133 Operating Income (lass) (50,216) (279,227) (161,147) 9,412 (481,208) NONOPERATING EXPENSES I .... esr 118.865 13.346 - 19,82 152,036 INCOME (LOSS) BEFORE OPERATING TRANSFERS (169,111) (292,573) (161,147) (10,413) (633,244) OTHER FINANCING SOURCES (USES) Operating transfers 1n - 20.257 20.257 NET INCOME (LOSS) (169,111) (292,573) (140,890) (10,413) (612,987) Retained earnings at beginning of year 9,768,026 317,487 2,562,468 57,461 12,705,442 Adjustments to fixed assets and contributed cspiral (56 C93) - - (56.093) Retained ea rnings at end of year $9,542,822 $ 24,914 $2,421,578 $ 47,048 $12,036,362 51 r City of Cape Girardeau, Missouri INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET _ June 30, 1988 + Data Fleet Totals Processing Management (Memorandum Fund Fund Only) ASSETS Cash and investments $ 9,121 $296,818 $ 305,939 Prepaid insurance 107 42.226 42,333 .+ 9,228 339,044 348,272 Property, plant and equipment Land 37,500 37,500 Buildings - 359.066 359,066 Improvement other than buildings - 11,477 11,477 Equipment 555,6fi2 107,735 663.395 -• 555,660 515,778 1,071,438 Less accumulated depreciation 100.281 121,409 _ 221 90 455.379 394,369 849,748 $464,607 $733,413 $1,198,020 LIABILITIES Accounts payable $ 1.2,948 $ 42,537 $ 55,485 Accrued liabilities Payroll taxes and fringe benefits 2,001 11,291 13,292 Retained earnings Unreserved 449,655 679,585 1 129 243 $464,607 $733,41.3 $1,198,020 52 0 " City of Cape Girardeau, Missouri. INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES AND EXPENSES AND RETAINED EARNINGS Year ended June 30, 1988 Data Fleet Totals Processing Management (Memorandum Fund Fund Only) .� OPERATING, REVENUES Fee charges $241,594 $767,217 $1,008,811 Sale of property - 21,244 21,244 Interest 1,821 15,436 17,257 ' Miscellaneous 1,870 1,870 243,415 805,767 1,049,182 OPERATING EXPENSES Personal services 49,540 267,799 317,339 Materials and supplies 7,905 292,990 300,895 ' General operations 988 552 1,540 Contractual services 122,333 231,038 353,371 Internal services - 5,967 5,967 ., Depreciation 49.186 19 744 68 930 229,952 818,090 1,048,042 NET INCOME (LOSS) 13,463 (12,323) 1,140 Retained earnings at beginning of year 436,195 691,908 1.128.103 Retained earnings at end of year $449,658 $679,585 $1,129,243 53 1 i i Y i i i 1 i i i 1 1 1 1 1 City of Cape Girardeau, Ml .... rl TRUST AND AGENCY FUNDS COMBINING BALANCE SUEET June 30, 1988 54 Floodvision Totals Library Prot ere ion 2000 (Memorandum Fund Fund Fund Only) ASSETS Cash and Inve a[menv $209,388 $ - $ - $209,388 Taxes receivable (net of allowance for doubtful receivables) 16,031 - - 16,031 Grants receivable 37,500 - - 37,500 Restricted cash and investments 11,929 109 114 561 121_604 $274,848 $109,114 $ 561 $384,523 LIABILITIES Account. payable $ 24,332 $ 53,851 $ 387 $ 78,570 Accrued liabilities Payroll taxes and fringe benefit. 9,538 - - 9,538 Fund balance Reserved 11,929 109,114 561 121,604 Unreserved 229`0495( 3,851) (387) 171_811 240`_978 5_5263 174 29415 $274,848 $109,114 $ 561 $384,523 54 I i i i i i f 1 1 1 i i i i i i REVENUES Teaes and special a enta Fees and se"Lce chargee Interest Int ergovernmmral Fines and forfeitures DOnatlaeu Miscellaneous EXPENSES Personal ..'i... Materials and supplies General operations Contractual a rvlces Capital outlay Special projects Internal services EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES Fund balance at beginning of year Fund balance at end of year City of Cape Girardeau, Missouri TRUST AND AGENCY FUNDS COMBINING STATEMENT OF REVENUES AND EXPENSES AND FUND BALANCE Year ended June 30, 1988 Flood Libra" Protection Fund Fund $319,365 $ - 9,251 - 13,723 7,999 63,886 - 10,327 - - 425,730 1_5_626 - 432,L7B 433,729 199,]33 - 76,451 7,308 149,459 16,979 - - 438,848 1 981 - 451,711 4]x_848 (19,533) (5,119) 260_511 60,382 $240,978 $ 55,263 55 Vision 2000 Fund 54 10,775 443 11,272 546 18 10,534 1190 174 S 174 Total. (Memorandum Only) $319,365 9,251 21,7]6 63,886 10,327 436,505 16+_069 877.179 199,733 76,997 7,126 159,993 16,979 438,848 1,981 901,657 (24,478) 320.893 $296,415 SUPPLEMENTAL INFORMATION 56 KERBER, ECK & BRAECKEL ' CERTIFIED PUBLIC ACCOUNTA,v(5 1221 B OADWAY OF czs IN aTn'a IiS fME.I. CAVE pIRA EAU. WSsOMO PE GIRARDEAU, MI55WRI 63]pl INSITnf1E OF eEanF1EO YJtittt: ACCO:)M+WSS 5T. MI.SSISAII SPPINORE6PIELD. IWNpS 314334A96B MIlW.1U IlEE WIS(DNSIN W6SNINCTON. DC. REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A STUDY AND EVALUATION ,MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have examined the. general purpose financial statements of the City of Cape Girardeau, Missouri for the year ended June 30, 1988, and have issued our report thereon dated September 20, 1988. As part of our exami- nation, we made a study and evaluation of the system of internal accounting ' control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial compliance audits contained in the U. S. General Accounting .. office Standards for Audit of Governmental Organizations, Programs, Activi- ties, and Functions. For the purpose of this report, we have classified the significant internal accounting controls in the following categories: General Petty cash Bank accounts Cash receipts Cash disbursements Investments .. Revenues and receivables Property and equipment Purchasing, receiving and accounts payable .. Payrolls Budget Electronic data processing Our study included all of the control categories listed above. The purpose of our study and evaluation was to determine the nature, timing, and extent of the auditing procedures necessary for expressing an opinion .. on the City's financial statements. Our study and evaluation was more. limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. 57 REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS - CONTINUED The management of the City of Cape Girardeau, Missouri is responsible for establishing and maintaining a system of internal accounting control, in fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are exe- cuted in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with gener- ally accepted accounting principles. Because of inherent limitations in any system of internal accounting control., errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate, Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control, taken as a whole or on any of the categories of controls identified in the first paragraph. However, our study and .. evaluation disclosed no condition that we believe to be a material weak- ness, This report is intended solely for the use of management and the cognizant audit agency, and other Federal audit agencies, and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City of Cape y Girardeau, Missouri is a matter of public record. Cape Girardeau, Missouri September 20, 1988 58 KERBER, ECK tar BRAECKEL. CERnnED PUBLIC ACCOC'N AMS 1231 BROADWAY MEM9EF6 nMLRIUY OFF1cE5 Iry GPE OIRARDEAU. MISSOURI 63341 lnsniLlTE OF t.'eRlI FIFO r G+PE gAnReEfiD. M65q'!w NBtl{ rtCCMJf.T.WfS 3'1'. i..(M5. MISKIPtl _ SPPINGFIEtD. 111JNg5 ]LLJJa-05E9 M1t.wnul� wlscnNslN 'W WA HINo em. DC r REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN EXAMINATION OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED .. IN ACCORDANCE WITH THE STANDARDS FOR AUDIT ISSUED BY THE GAO r Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri for the year ended June 30, 1988, and have issued our report thereon dated September 20, 1988. Our examination was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations- Programs, Activities and Func- tions, issued by the U. S. General Accounting Office and, accordingly, r included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. • The management of the City of Cape Girardeau, Missouri is responsible for compliance with laws and regulations. In connection with our examina- tion referred to above, we selected and tested transactions and records to determine the City's compliance with laws and regulations, noncompliance with which could have a material effect on the general purpose financial statements. The results of our tests indicate that for the items tested, the City of Cape Girardeau, Missouri complied with those provisions of the laws and regulations, noncompliance with which could have a material effect on the ,. general purpose financial statements. Nothing came to our attention that caused us to believe that for the items not tested the City of Cape Girar- deau, Missouri was not in compliance with laws or regulations, noncompli- ance with which could have a material effect on the general purpose finan- cial statements. Cape Girardeau, Missouri September 20, 1988 59 OFFICES IN _ CMe E'SOOR, I LaoIs. MISSOURI SPRWGFIO-0. IWNOIS M ILWAl11lEE WISCONSIN wI WASHINGTON, OG KERBER, ECK & BRAECKEL CERTIFIED PUBLIC ACCOUN AWS 1221 BROADWAY CAPE GIRARDEAU. MISS 81 63701 REPORT ON STATEMENT OF FEDERAL FINANCIAL ASSISTANCE MEMBERS AMERICAN INvnE,YE OF OF."Co N E: .ACCOVs'ANI'S 914.3]4-0"8 Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri s We have examined the generalpurpose financial statements of the City of Cape Girardeau, Missouri for the year ended lune 30, 1988, and have issued our report thereon dated September 20, 1988. Our examination of such general purpose financial statements was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations. Pr prams Activities and Functions, issued by the U. S. General Accounting Office and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Statement of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial. statements. The information in that schedule has been subjected to the auditing procedures applied in the examination of the general pur- pose financial, statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. Cape Girardeau, Missouri. September 20, 1988 ", qkL 60 1 1 A 1 1 i 1 1 1 i 1 1 i i 1 f f 1 1 City of Cape Girardeau, His .purl STATEMENT Oy FEDERAL FINANCIAL ASSISTANCE June 30, 1988 Fedetal Program CFOA- r Avard Balance Olsbursemenv/ Balance Federal Gvnmr/Pass-Throvah GuntorlTltls N-hcr Amount June 30, 1987 Receipts Expend Mures June 30, 1988 Department of Housing and Urban Development Pass ed through Missouri Department of Economic Development Community Development Block Grant CDA-082-03; 84-NO-01 14.219 $ 612,500 $ (4,785) $ 27,977 $ 29,352 $ (6,160) Community Development Block Grant CDA-104-66; B6-ED-11 14.219 293,365 (111) 209,268 215,)51 (6,594) Community Development Block Grant COA-213-65; 86-ED-10 14,219 205,000 - 9,159 11,911 (2,752) Community Development Block Grant CDA-106-56; 87-ED-06 14,219 346,868 - 116,091 141,876 (25,285) Rental Rehabilitation Program NR-84-SC-290103 14.219 - (426) - 649 (1,025) Community Development Block Grant CDA-104-43; 86-NO-09 14,219 314,000 �87) 168.969 178,543 (9,661) Total U.S. Department of Homing and Urban Development 1,221,233 (5,409) 531,464 528,082 (52,022) Department of Transportation Federal Aviation Adminlatrati-n Alt Traffl- Se rvlces DTFA09-84-820054 145,498 - 141,966 141,966 - Alr Development Aid 3-29-0013-02 456,611 (2,514) 222,420 252,245 (221289) Passed through Missouri Department of Public Safety Sobriety Checkpoint 88-03-18 20.600 3,500 - 1,600 1,600 Sobriety Checkpoint Checkpoint 82-03-12 20.600 3,300 - 1,325 1,325 - Cape Girardeau Comprehensive Community Traffic Safety 88-90-09 20,600 25,000 - 30,290 30,290 - Passed through Missouri Highway and Transportation Department Public Taxi Coupon Transportation Program MO-18-XO05-CG 20.509 52,500 (122,999) 1,302 2,613 (124,305) Public Taxi Coupon Transportation Program MO-18-%005-C1 20.509 52,500 - 52,500 125,299 (122,299) Federal Aid Urban Program FAUP Grant - M-1518(002) 20,205 - (85,051) - - (85,051) FAUP Grant - M-1505(001) 20.205( 96,623) 23.296 24.035 9862) Total U.S. Department of Transportation 288,909 (302,182) 480,254 629,823 (456,806) 61 t 1 1 t t f 1 1 I 1 t I t City Of Cape Girardeau, Mlsaouri STATEMENT OF FEDERAL FINANCIAL ASSISTANCE - CONTMED June 30, 1988 Federal Program CFDAo r Award Balance Disbursements/ Balance Federal Grantor/Pave-Through Grantor/TLtle Number Amount June 30, 1987 Receipts Ennend Ltutts June 30, 1988 Department of Justice Passed through Mieeou rt Depaotmmt of Public Safety Crime Prevention Program 86-JA01-0027 15.916 6,912 - 6,912 10,951 (4,039) TOTAL FEDERAL ASSISTANCE $2,567,554 $(312,596) $1,018,630 $1,218,906 $(512,8)2) 62 c KERBER, E(.,K & BRAECKEL... CER3ti'gED PUBLIC ACCOUNTANTS 1221 BROADWAY Me.mas nM moc,' PFFlCE!t Iry CAPE GVMRD AU, MISSCUM 63701 111 OF CE.P a`J Gu AcElV, MIaJ.%IPo P BLN: ACCIX:N WTi ST. Dous. MlssouM _ SVWNOF., IWrvos 3!a -33W 560 WLWA1. wISCCs6, N + wnswrvctt>µ oc. + REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and Members of the City Council + City of Cape Girardeau, Missouri We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri, for the year ended June 30, 1988, and have issued our report thereon dated September 20, 1988. Our examination was made in accordance with generally accepted auditing, standards; the stand- ards for financial and compliance audits contained in the Standards for Audit of Governmental Orz iz t`o F er A tivities and Functions issued by the U. S. General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the cir- cumstances, + The management of the City of Cape Girardeau, Missouri, is responsible for the City's compliance with laws and regulations. Tn connection with the examination referred to above, we selected and tested transactions and + records from each major Federal financial assistance program. The purpose of our testing of transactions and records from those Federal financial assistance programs was to obtain reasonable assurance that the City of Cape Girardeau, Missouri, had, in all material respects, administered major programs and executed the tested nonmajor program transactions, in compli- ance with laws and regulations, including those pertaining to financial reports and claims for advances and reimbursements, noncompliance,, with which we believe could have a material effect on the allowability of pro- gram expenditures. Our testing of transactions and records selected from major Federal financial assistance programs disclosed no instances of noncompliance with those laws and regulations, M M 63 c REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS - CONTINUED In our opinion, for the year ended June 30, 1988, the City of Cape Girardeau, Missouri, administered its major Federal financial assistance programs in compliance, in all material respects, with laws and regula- tions, including those pertaining to financial reports and claims for advances and reimbursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. The results of our tests indicate that for the transactions and re- cords tested the City of Cape Girardeau, Missouri, complied with the laws and regulations referred to above. Our testing was more limited than would be necessary to express an opinion on whether the City of Cape Girar- deau, Missouri, administered those programs in compliance, in allmaterial respects, with laws and regulations noncompliance with which we believe could have a material effect on the allowability of program expenditures; however, with respect to the transactions that were not tested by us, nothing came to our attention to indicate that the City of Cape Girardeau, Missouri, violated laws and regulations. � � Cape Girardeau, Missouri September 20, 1988 64 -KERBER, ECK & BRAECKEL CZenrWD PUBLIC ACCO AMcY 1221 oaoADWAr ME'.NtlEYIS RICAN OfFlCE$FAUIN i^Ape CIRAftDk:AU, MiS50UNI 63:01 1N52mCa (£rznANtr � CAPE GIPARO, M65WN R10LIC 1 ACCDUM ST LCJ1115, MI550VfU _ 5 P[LNCFIEtL, ISCQfS CO Naal 3tb13iD5fi8 MvtWntMFE wiN WASN1NGfQN, DC REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT D Honorable Mayor and Members of the City Council city of Cape Girardeau, Missouri We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri, for the year ended. June 30, 1988, and have issued our report thereon dated September 20, 1988. As part of our examin- ation, we made a study and evaluation of the internal control systems, including applicable internal administrative controls, used in administer- ing Federal financial assistance programs to the extent we considered necessary to evaluate the systems as required by generally accepted auditing standards, the standards for financial and compliance audits contained in the Sta d Tl for Aud't pf Go mental Orzanigp tions. Programs, Activjtie&_And_FuUctionc, issued by the U.S. General Accounting Office, the Single Audit Act of 1984, and the provisions of OMB Circular A- 128, Audits of State and Local Government. For the purpose of this report, we have classified the significant internal accounting and administrative controls used in administering Federal financial assistance programs in the following categories: A 1. Cycles of the Entities' Activity Treasury or financing Revenue/receipts >y Purchases/disbursements External financial. reporting ,,. 2. Financial Statement Captions Cash and cash equivalents Receivables Property and equipment ,. Payables and accrued liabilities Debt Fund balance ,. 3, Accounting Applications Billings Receivables Cash receipts 65 REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACL - CONTINUED d 9. Accounting Applications - continued Purchasing and receiving Accounts payable Cash disbursements Payroll Property and equipment ,. General ledger Controls Used in Administering Federal Programs 4. General Requirements Political activity Davis -Bacon Act Civil Rights Cash management Relocation assistance and real property acquisition Federal financial reports 5, Major Federal Assistance Programs Eligibility Types of services Matching level of effort Reporting The management of the City of Cape Girardeau, Missouri, is responsible for establishing and maintaining internal control systems used In adminis- tering Federal financial assistance programs. In fulfilling that respon- sibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control systems used in administering Federal financial assist- ance programs are to provide management with reasonable, but not absolute, assurance that, with respect to Federal financial assistance programs, resource use is consistent with Laws, regulations and policies; resources are safeguarded against waste, loss and misuse; and reliable data are obtained, maintained and fairly disclosed in reports. Because of inherent limitations in any system of internal accounting r and administrative controls used in administering Federal financial assist- ance programs, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the systems to future periods is subject to the risk that procedures may become inadequate be- cause of changes in conditions or that the degree of compliance with the procedures may deteriorate. W_ 0 REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINAtNCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT - CONTINUED Our study included all of the applicable control categories listed above. During the year ended June 30, 1988, the City of Cape Girardeau, Missouri, expended 80% of its total Federal financial assistance under + major Federal financial assistance programs. With respect to internal control systems used in administering these major Federal financial assistance programs, our study and evaluation in- cluded considering the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors and irregularities, determining whether the necessary proced- ures are prescribed and are being followed satisfactorily, and evaluating any weaknesses. .. With respect to the internal control systems used solely in adminis- tering the other nonmajor Federal financial assistance programs of the City of Cape Girardeau, Missouri, our study and evaluation was limited to a prc- liminary review of the systems to obtain an understanding of the control environment and the flow of transactions through the accounting system. Our study and evaluation of the internal control systems used solely in ad- ministering these nonmajor Federal financial assistance programs of the City of Cape Girardeau, Missouri, did not extend beyond this preliminary review phase. Our study and evaluation was more limited than would be necessary to express an opinion on the internal control systems used in administering the Federal financial assistance programs of the City of Cape Girardeau, Missouri. Accordingly, we do not express an opinion on the internal + control systems used in administering the Federal financial assistance pro- grams of the City of Cape Girardeau, Missouri. + Also, our examination, made in accordance with the standards mentioned above, would not necessarily disclose materialweaknesses in the internal control systems, for which our study and evaluation was limited to a pre- liminary review of the systems. However, our study and evaluation and our examination disclosed no condition that we believe would result in more than a relatively low risk + that errors or irregularities in amounts that would be material to a Fed- eral financial assistance program may occur and not be detected within a timely period. This report does nor affect our reports on the general purpose financial statements and on the City's compliance with laws and regulations dated September 20, 1988. 67 r REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT - CONTINUED This report is intended solely for the use of management and the cognizant audit agency, and other Federal audit agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City of Cape Girardeau, Missouri is a matter of public record. Cape Girardeau, Missouri September 20, 1988 .11 I i i Y 1 t 1 1 1 1 1 1 1 i Y 1 i 1 f issue Dat April 9, 1987 July 28, 1906 January 29, 1987 August 12, 1987 August 12, 1987 August 12, 1987 August 12, 1987 August 12, 1987 August 13, 1986 July 1, 1987 July 1, 1987 April 1, 1987 June 30, 1987 Fob mary 2, 1987 City of Cape Girardeau, Missouri M Police Revolver and Pistol Club - RRA Club liability $400,000 Bodily injury and property damage - City Swimming Pool, Capaha - $300,000, bodily injury: $100,000 Property damage Bodily injury and property damage - City Swimming Pool, Central - $300,000, bodily Injury; $10,000 property damage Trickling filter building - Southeast Corner, Pacific Street and Missouri Pacific Railroad - $100,000 Garage and shop flood insurance - Southeast Corner, Cooper Street and Missouri Pacific Railroad - $90,200 Pump station - Southeast Corner, Pacific Street and MSVOurL Pacific Railroad - $100,000 Laboratory building - Southeast Corner, Cooper Street and Missouri Pacific Railroad - $100,000 Vacuablinc Lnerator - Southeast Corner, Pacific Street and Missouri Pacific Railroad - $100,000 Workmen's Compensation and employers liability - statutory Sewage treatment plant - $1,000,000 Limit: $1,000 deductible City Hall bolLer and other fixed pressure¢ vessels - $1,000,000 per accident Automobile Insurance - liability $300,000 per accident, full comprehensive and collision coverage Airport liability and property damage - $1,500,000 for each occurrence Surety Bond - Assistant City Manager - $40,000 STATFJ4:NS OF INSURANCE COVERAGE For Year ended June 30, 1988 Exti—el.. Data Company and Policy Number April 9, 1988 General Accident Insurance Curcio, of America: Policy 0 CL0061934-04 July 28, 1987 Northland Insurance Company: Policy R FGL20021 January 29, 1988 Northland Insurance Company: Policy 0 FGL31766 August 12, 1988 National Flood Insurance Pmgrw: Policy T FL -1-9370-8790-4 August 12, 1988 National Flood Insurance Program; Policy M FL -1-9370-0793-8 August 12, 1988 National Flood Insurance Program: Policy 0 FL -1-9370-8791-2 August 12, 1988 National Flood Insurance Program: Pollcy 1 FL -1-9370-8789-6 August 12, 1988 Mail ... 1 Flood Insurance Program; Policy A FL -1-9370-0792-0 August 13, 1981 CNA Insurance Compemy: Policy t AR 5610441 July 1, 1988 Hartford Steam Boller Inspmtton and Insurance Compmy: Policy Y SL -9223237-13 July 1, 19.8 Kemper Croup General Boiler and Machinery: Policy 13%M01272600 April 1, 1989 U.S. Fidelity and Guaranty Company: Policy N IAB -10821774700 June 30, 19.9 General Insurance Company of Americas Policy g API 07644 February 2, 19.8 The Aetna Casualty and Surety Company, Bond ,1 551061023 M Police Revolver and Pistol Club - RRA Club liability $400,000 Bodily injury and property damage - City Swimming Pool, Capaha - $300,000, bodily injury: $100,000 Property damage Bodily injury and property damage - City Swimming Pool, Central - $300,000, bodily Injury; $10,000 property damage Trickling filter building - Southeast Corner, Pacific Street and Missouri Pacific Railroad - $100,000 Garage and shop flood insurance - Southeast Corner, Cooper Street and Missouri Pacific Railroad - $90,200 Pump station - Southeast Corner, Pacific Street and MSVOurL Pacific Railroad - $100,000 Laboratory building - Southeast Corner, Cooper Street and Missouri Pacific Railroad - $100,000 Vacuablinc Lnerator - Southeast Corner, Pacific Street and Missouri Pacific Railroad - $100,000 Workmen's Compensation and employers liability - statutory Sewage treatment plant - $1,000,000 Limit: $1,000 deductible City Hall bolLer and other fixed pressure¢ vessels - $1,000,000 per accident Automobile Insurance - liability $300,000 per accident, full comprehensive and collision coverage Airport liability and property damage - $1,500,000 for each occurrence Surety Bond - Assistant City Manager - $40,000 I 1 i f i 1 1 1 1 1 i i i 1 1 i 1 1 1 City of Cape Girardeau, Missouri STATEMENT OF INSURANCE COVERAGE - CONTINUED For Year ended June 30, 1988 Issue Dace Exhiraclon Date ComnanY and Policy Number August 28, 1986 August 28, 1987 The Aety Casualty and Surety Surety Band - City Clerk - $40,000 Company; Bond Y 5100198828 March 30, 1987 March 30, 1988 The Aetna Casualty and Surety Surety Bond - City Manager - $50,000 Companyt Bond / 551059712 October 1, 1987 October 1, 1988 The Aetna Casualty and Sumty Surety Bond - City Treasurer - $40,000 Company' Bond / 515049024 May 8, 1988 May 8, 1989 The Aetna Casualty and Surety Public Employee Blanket Bond - $10,000 Company; Bond 151FID0399772 BCA July 1, 1986 August 1, 1987 Westchester Fire Insurance Company; B1aNvec - arloua building and contents - $10,000,000 Policy / 500-3758026 90% colnsurancet bodily and property damage - $1,500,000/$1,5no,000, $1,000 deductible October 6, 1984 October 6, 1987 Weatchescar Fire Insurance Company; Sewage treatment plant insurance on, trickling filter Policy 1500-381695-8 tank, effluent samp ling station, flood pumping station, laboratory, garage and shop, valuable papers, vacuum incinerator building, pumping stations - totalccvezage $4.936,451 Augmc 10, 1986 August 10, 1987 National Cuua lq Companyt PubL1C official liability for Mayor,of the tted Policy / PO 622491 ppoi arm City Council, ocher elected o appointed anager,[other Manager, Manage[, other appointed eparCity Atto may and ds. City Attorney volunteer departments heads, volunteer cions representative se a cuing o clay oboards and itmm, oot not include school, rt, head o poli f firer, hospital, head of Police department, head of fire department and judicial lois - $110001000/ 500 tiblc $1,000,000, $2,SOG deductible July 1, 1986 July 1, 1987 United States Fidelity and Guaranty Mobile Property Floater policy - radios Company; Policy / SP046955073 August 10, 1986 August 10, 1987 Nacional Casualty Companyt Policy Lav Enforcement Liability Insurance Policy, $1,000,000 ♦ PL 601452 each person, $1,000,000 each occurrence March 8, 1988 March 8, 1989 Commercial Union Ioeuronca Companyt Cape Girardeau Municipal Band, musical instruments Policy I CTUS93905 floater, $14,694 August 1, 1986 August 1, 1987 National Union Fire Insurance Companyt Blanket - arlcus buildings and c cents - $11,452,424, Policy / D-9078186 90S colnsurancet $25,000 deductible 70 1 1 1 i i 1 1 1 1 1 1 i i 1 City of Cape Girardeau, Missouri STATEMENT OF INSURANCE COVERAGE - CONTINUED For Year ended June 30, 1988 Issue Bate Emlration Data Comoanv and Poll., Number Cove cane September 29, 1986 September 29, 1987 Aetna Casualty and Surety Company; Surety Bond - Library Employees - $2,500 Policy i 51 F 6514 BGA May 8, 1987 May 8, 1988 Hanover Insurance Company, policy Cape Girardeau Public Library property damage and / Q-239-22-90 liability - S1,OO0,000 each cur nce, $1,000,00 0 aggregate May 8, 1987 May 8, 1988 Hanover Insurance Company; Policy Cape Girardeau Public Library buildings and contents / Q-239-22-90 - $1,000,000 limit. 90% coinsurance on buildings, $160,000 lima, BOX coinsurance on contents August 1, 1987 August 1, 1988 Hartford Accident and Indemnity Workmen's compensation and employers liability - Company; Policy / 37-W2 A08316 acatuto" July 28, 1987 July 28, 1988 Missouri Public Entity Risk $10,000 Police profasalona1 Liability, Public Management Fond, Pallcy / 1049 officials errors and oro lesions only, $50,000 general liability; $800,000 per occurrence April 10, 1988 April 10, 1989 Hartford Accident and Indemnity Cape Girardeau Police Reserves - $10,000 maximum Company; Policy / 84 -SR -960844; .25 deductible BN0436 July 22, 1987 July 22, 1988 Fireman's Fund Insurance Company; E.B.P. Policy, $350,000 hardware; $150,000 software Policy Y 2 -84 -MI 60088447 $1,000 deductible; $2,500 deductible for mechanical breakdavn May 13, 1987 August 1, 1988 American Insurance Company; Bla;sket - various buildings and contents - Policy I !CN 80069312 $11,774,976; $25,000 dedoctlble January 3, 1987 January 3, 1988 United States Fidelity and Guaranty Al cynic re ataucanq $1,000,000 each occurrence Company; Policy / 093118388 71